Stock market today: Nasdaq, S&P 500 slide as Alphabet and AMD earnings fall short
Published On Feb 5, 2025, 10:21 AM
U.S. stock markets experienced a pullback as disappointing earnings from major tech companies Alphabet (GOOGL) and AMD (AMD) raised concerns among investors. Alphabet's shares dropped nearly 8% due to a shortfall in anticipated cloud revenue. AMD's stock fell over 9% after a revenue beat was overshadowed by a weak data center sales forecast, raising fears about AI momentum. Additionally, tensions in the U.S.-China trade war added to market anxiety, particularly affecting tech stocks like Apple (AAPL), which also saw a decline following news of a potential antitrust probe in China. In contrast, Disney (DIS) reported better-than-expected earnings, driven by its streaming service, despite taking a hit from hurricanes in its theme park operations. Overall, the market reflects a cautious outlook as investors navigate earnings reports amid geopolitical risks.
Stock Forecasts
GOOGL
Negative
The disappointing cloud revenue from Alphabet raises questions about the effectiveness of its investments in AI. Investors may continue to withdraw from Alphabet as the trade war unfolds and impacts its global operations. AMD's weak sales forecast in the data center segment suggests a potential slowdown in AI-related growth, which might further pressure its stock.
DIS
Positive
Despite the recent dip, Disney's mixed earnings report indicates resilience in their streaming segment, though the anticipated subscriber drop may temper investor enthusiasm. The long-term recovery and presence in streaming still provide a potential growth avenue.
AAPL
Negative
Apple's involvement in the trade dispute and the potential antitrust investigation in China creates substantial risks for the stock. This scrutiny adds uncertainty to future revenues, particularly from its app ecosystem.
Related News
Could the Trade Fight Take a Bite Out of Apple?
Feb 5, 2025, 8:32 AM
A news report says that Beijing is weighing an inquiry into the iPhone maker, underscoring Chinas options in fighting against President Trump’s tariff threat.
China considers probe into Apple's App Store fees, practices, Bloomberg News reports
Feb 5, 2025, 4:19 AM
The development comes a day after China announced a wide range of measures targeting U.S. businesses including Google, farm equipment makers and the owner of fashion brand Calvin Klein, minutes after new U.S. tariffs on Chinese goods took effect. The country's State Administration for Market Regulation is reviewing Apple's policies, including its up to 30% commission on in-app purchases and restrictions on external payment services and App Stores, the report said.
Stock market today: Nasdaq futures slip to lead S&P 500, Dow lower as Google earnings fall short
Feb 5, 2025, 3:14 AM
US stock futures pulled back after-hours against a backdrop of mixed earnings and the outbreak of a trade war with China.